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BUILDING A WILDLIFE ECONOMY Working Paper 1: Developing Nature-Based Tourism in Africa’s State Protected Areas BUILDING A WILDLIFE ECONOMY 1
THIS DOCUMENT This working paper is the first in a series produced by UN ENVIRONMENT PROGRAMME Space for Giants and the United Nations Environment The United Nations Environment Programme (UN Programme (UN Environment) entitled ‘Building a Environment) is the leading global environmental wildlife economy’. The series has been commissioned authority that sets the global environmental agenda, to inform a framework for the African Union and its promotes the coherent implementation of the member nations for the optimum use of wildlife to environmental dimension of sustainable development diversify and expand their economies, strengthen the within the United Nations system, and serves as an livelihoods of their citizens, and achieve ecological authoritative advocate for the global environment. resilience in the face of pressing modern social and Our mission is to provide leadership and encourage environmental challenges. Conservation Capital were the partnership in caring for the environment by inspiring, lead technical authors of this Working Paper. informing, and enabling nations and peoples to improve their quality of life without compromising that of future generations. ABOUT US FUNDING & ACKNOWLEDGMENTS This Working Paper was funded by UN Environment and SPACE FOR GIANTS Space for Giants. The authors are Conservation Capital Space for Giants is an international conservation charity (lead technical author) and Space for Giants.. The authors that protects Africa’s elephants and their habitats while would like to acknowledge and thank the following for demonstrating the ecological and economic value their technical guidance and input: James Vause, Nina both can bring. It uses science and best-practice to Bhola and Helen Klimmek from the UN Environment deliver conservation investment initiatives that attract World Conservation Monitoring Centre (UNEP-WCMC); new funding to under-resourced protected areas. It Philipp Schägner from the Joint Research Centre of the works with national authorities to strengthen legal European Commission; Brian Child; Francis Vorhies. action to fight wildlife crime and protect animals in the wild. It uses technology it pioneered to reduce human-elephant conflict, and works with a wide range of individuals including academics, journalists, celebrities, philanthropists, and sportspeople, to bring new supporters to its cause. It is headquartered in Kenya, works in at least eight countries in Africa, and is registered as a charity in the UK and a non-profit in the US. Learn more at www.spaceforgiants.org. CONSERVATION CAPITAL Conservation Capital (www.conservation-capital.com) is a specialist advisory firm focused on conservation business and finance. For the past 15 years, they have advised African governments, protected area authorities, leading NGOs and private sector companies on all aspects of conservation tourism development. With business consultants based in Nairobi, Kampala, Harare and Cape Town, the firm has particular expertise in tourism planning, concession design, private sector tourism partnerships and related financing. 2 BUILDING A WILDLIFE ECONOMY
BUILDING A WILDLIFE ECONOMY Working Paper 1: Developing Nature-Based Tourism in African State Protected Areas BUILDING A WILDLIFE ECONOMY 3
CONTENTS 05 List of Terms BUILDING 06 Executive Summary A WILDLIFE 08 The Economic Impact Of Nature-Based ECONOMY Tourism In Africa’s State Protected Areas The Future Potential Of Nature-Based 16 Published by Space for Giants All rights reserved © 2019 Tourism In Africa’s State Protected Areas All material appearing in this publication is copyrighted 25 A Conservation Investment Toolkit For African and may be reproduced with permission. Please contact info@spaceforgiants.org Protected Area Management Authorities for details. Any reproduction in full or in part of this publication mustcredit 33 Space for Giants. Design & Layout Conclusion Eric Irungu erungu@gmail.com 4 BUILDING A WILDLIFE ECONOMY
BUILDING LIST OF TERMS A WILDLIFE ECONOMY • Consumptive use of wildlife: human use of business assets, including establishing ownership or wildlife resources involving extracting wildlife from controlling interest in a foreign company. its habitat; activities such as hunting, fishing, and • Gross Domestic Product (GDP): the total value trapping. of goods produced and services provided in a country • Domestic tourism: tourism involving residents of during one year. a given country, including foreign residents, traveling • Meta-analysis: an examination of data from a within that country. number of independent studies of the same subject in • Economic multiplier: the way in which a change order to determine overall trends. in spending produces an even larger change in wider • Nature-based tourism: tourism in natural areas, income. where the principal objective of the visit is enjoyment • Ecosystem services: benefits people obtain of nature and wildlife. from ecosystems. Examples include soil formation, • Protected area: a clearly defined geographical raw materials, food, water, hydropower, carbon space, recognised, dedicated and managed, through sequestration, air and water purification, and legal or other effective means, to achieve the recreational experiences. long term conservation of nature with associated • Ecotourism: responsible travel to natural areas ecosystem services and cultural values1. This report that conserves the environment, sustains the well- focuses on State Protected Areas. being of local people and involves interpretation and • Sustainable Development Goals (SDG): a education (The International Ecotourism Society universal call to action to end poverty, protect the definition) planet and ensure that all people enjoy peace and • Foreign Direct Investment (FDI): an investment prosperity taking the form of a collection of 17 global made by a firm or individual from one country into goals set by the United Nations General Assembly in business interests in another country. Generally, 2015 to be achieved by 2030. FDI takes place when an investor establishes Financial values throughout this report are in US Dollars. foreign business operations or acquires foreign 1 https://www.iucn.org/theme/protected-areas/about/protected-area-categories BUILDING A WILDLIFE ECONOMY 5
EXECUTIVE SUMMARY Tourism drives 8.5% of Africa’s economy, and in African State Protected Areas. Its authors have sought to demonstrate the supports 24m jobs. By 2030, visitors could elements required to create an enabling more than double, to 134m people. environment for sustainable nature- based tourism. It is the first in a series The global tourism industry accounts great wildlife spectacles left on Earth, produced by Space for Giants and its for one in ten jobs and 10.4 % of GDP or including populations of terrestrial partners, entitled ‘Building a Wildlife $8.8 trillion annually. It accounted for megafauna that are globally unique. Economy’. This body of work will inform one of every five new jobs created over In doing so, these tourists provided a African Union member nations on the the last five years, globally. Nowhere powerful financial boost to the African potential use of wildlife to diversify and on the planet is tourism growing faster countries that succeeded in attracting grow their economies, strengthen rural than in sub-Saharan Africa, where their custom. livelihoods, and achieve vital ecological the number of hotels has doubled in resilience in the face of pressing social just four years. By 2030 the number The most thorough study conducted into and environmental challenges. of international tourists to Africa is the financial impact of nature-based projected to jump from 62m to 134m tourism2 has found Africa’s 8,400 The research undertaken for this people. This rate of growth is potentially Protected Areas are generating $48 Working Paper revealed that while transformative because already tourism billion in direct in-country expenditure. Africa’s unique diversity of wildlife and comprises 8.5% of the continent’s This demonstrates that significant habitat has the potential to radically economy supports 24m jobs. financial opportunity is available to transform the continent’s economy, the African governments that protect, this exceptional asset is being rapidly Wildlife is the single biggest driver for market, and develop their natural assets degraded. For example Africa’s Protected Africa’s tourism growth. The United in the right way for the tourism market Area Network is underfunded by up to Nations World Tourism Organisation – and that financial opportunity is only ten times the required level. One recent found that 80% of annual sales of trips predicted to grow significantly. study, warned as much as $2 billion more to Africa were for wildlife watching: is needed if the continent’s surviving people wanting to visit the natural This Working Paper addresses the lions are to be maintained. There is an ecosystems that contain some of the last economic value of nature-based tourism urgent need to identify sustainable funds 2 Bertzky et al., (2017), European Commission, Joint Research Centre, Science for the AU-EU Partnership: building knowledge for sustainable development, Publications Office of the European Union, Luxembourg. 6 BUILDING A WILDLIFE ECONOMY
to maintain the natural landscapes that towards community development around It is our hope that Africa’s national are not only driving Africa’s economy national parks. governments will now unlock the but are also supporting the ecosystem financial opportunities available by services on which all life on Earth Outside Africa, Costa Rica has become creating an enabling environment we depends. an inspiration for other countries have identified through the adoption of after it committed itself to a long-term this Toolkit, and that bilateral agencies, Nature-based tourism is not only a national nature-based tourism plan. commercial and impact investors, and solution to this funding gap but if Today, despite accounting for only 0.03% the world’s philanthropists invest in implemented correctly, it has the of Earth’s land area, it attracts 2.3m the application of this Toolkit to help potential to significantly improve the tourists a year, generates $7.5 billion deliver major economic, social and livelihoods of citizens. This is for several annually, and through its ‘Forever Costa environmental benefits. reasons: Rica’ initiative has secured the long term financing to maintain its Protected Area At present few of Africa’s protected areas 1. Tourism leverages key assets of the Network. are meeting their potential as engines rural landscapes where the majority for tourism growth. This presents a of Africans live The objective of this Working Paper challenge but also a major opportunity is not only to demonstrate the value for the continent’s governments because, 2. It generates 40% more full-time of nature-based tourism as part of a if cared for and developed sustainably, jobs than the same investment in wildlife economy. It is also to provide Africa’s protected areas are national agriculture a roadmap for African countries to assets that can provide significant 3. It has twice the job creation power of achieve optimum economic, social, and financial and social returns not only in the automotive, telecommunications environmental benefits through tourism. the short term but for centuries to come. and financial industries It does so by setting out a seven-step This Working Paper details how that can Toolkit that, when implemented, will be done. 4. It provides significantly more job create an enabling environment to opportunities for women compared attract investment into the sector. to other sectors. Every step has been informed by Furthemore nature-based tourism thorough analysis of the policies and is also a major multiplier in terms procedures utilised by various African of wider economic impacts. A meta- protected area authorities for developing analysis shows that for every $1 of direct nature-based tourism and, if adopted, spending in protected areas, including can boost investment by up to 11 times park fees, lodge nights, activities booked in a single protected area. Annex 2 of at lodges/camps and so on, an additional this Working Paper provides worked $0.79 is spent in the local economy. In examples where the Toolkit has been some countries this wider impact is far applied to protected areas in countries higher. For example a recent analysis with high performing, growing and shows that for every $1 spent by a leisure potential destinations. tourist in Uganda, an additional $2.5 in GDP is generated. This first Working Paper of the series does not consider the role of A number of governments have taken consumptive utilisation; the importance the steps necessary to realise the and effective distribution of benefits to transformative opportunity presented citizens from wildlife-based enterprises; by nature-based tourism. In Rwanda, the emerging opportunity and design for example, only 1,000 tourists visited considerations of private-public national parks in 1999. Now, after the partnerships to optimise Protected Area Government established a Tourism Plan Management; or the value of ecosystem and associated enabling environment, services within protected areas. These there are more than 94,000 tourists, the will be considered in the other Working sector provides work for 410,000 people, Papers under development. and 15% of tourism revenues are directed BUILDING A WILDLIFE ECONOMY 7
1 THE ECONOMIC IMPACT OF NATURE-BASED TOURISM IN AFRICA’S STATE PROTECTED AREAS Figure 1:Protected area coverage across African nations5 . 1.1. AFRICA’S PROTECTED UNEP-WCMC and IUCN (2019) AREA NETWORK The International Union for the Conservation of Nature (IUCN) defines a protected area as “a clearly defined geographical space, recognised, dedicated and managed, through legal or other effective means, to achieve the long term conservation of nature with associated Data Deficient ecosystem services and cultural values”3.
Many governments have scaled back shortfalls17,18 increase dependence on evaluations of their economic impact, protection10,11, and today many species of international finance19,20, and despite with the absence of peer reviewed African large terrestrial mammals face generating some income, Africa’s methodologies meaning those that do extinction as their populations decline protected areas are mostly today exist lack credibility25 . Therefore the and their geographic ranges collapse12,13. subsidised by a mix of governments true value of the continent’s nature- This degradation of protected areas and private and non-governmental based tourism is poorly understood26. is having major social and economic organisations with an interest in African governments recognised this consequences, for example as sources of conservation. information gap in the Abuja Call for water are undermined and as erosion, Action for the Development of Tourism climate change and human-wildlife In South Africa for instance, state Statistics in Africa27. conflict are increasing. protected areas received $20m in public funding in 200621. This lack of In this Working Paper, we make a case Governments tend not to fund their State sustainable funding undermines the for increasing investment in nature- Protected Areas adequately because of aim of protecting these areas in the first based tourism in Africa’s State Protected competition for limited resources with place, which is to conserve the species Areas in a way that supports wildlife immediate social needs like education and habitats they support22,23. For and their habitats. Communally- and health, and because government example, a recent study estimated that owned protected areas and the ways bureaucracy tends to consider protected maintaining lion populations in Africa’s in which their wildlife and habitats areas as environmental rather than protected areas needed an extra $800m can be managed by, and benefit, their economic assets14 . to $2 billion annually24 . communities will be addressed in a subsequent working paper in this series. One estimate calculated that some However there is a lack of reliable receive less than one-tenth of the data on the revenues that Africa’s money they need15,16. These budgeting protected areas generate, and few 10 https://www.conservation.org/projects/Pages/PADDD-Protected-Area-Downgrading-Downsizing-Degazettement.aspx 11 Mascia, M, Pailler, S., Krithivasan,R, Roshchanka, V., Burns, D., Mlotha, M., Murray, D., and Peng, N. (2014) Biological Conservation 169, 355-361 12 Craigie ID, Baillie JEM, Balmford A (2010) Large mammal population declines in Africa’s protected areas. Biol Conserv 143:2221–2228 13 Bobe. R., Carvahlo S., (2018). The decline of Africa’s largest mammals. Science 362, Issue 6417, pp. 892-893 14 Wilkie D, Carpenter JF, Zhang Q (2001) The under-financing of protected areas in the Congo Basin: so many parks and so little willingness-to-pay. Biodivers Conserv 10:691–709. 15 Coad L., Burgess N., Geldmann J., Leverington F., (2019), Widespread shortfalls in protected area resourcing undermine efforts to conserve biodiversity. Frontiers in Ecology and the Environment. 16 Lindsey P., Miller J., Petracca L., Coad L., et al. (2018), More than $1 billion needed annually to secure Africa’s protected areas with lions. PNAS. 17 Bruner, A.G., Gullison, R.E. & Balmford, A. (2004) Financial costs and shortfalls of managing and expanding protected-area systems in developing countries. AIBS Bulletin, 54, 1119–1126. 18 Mccarthy, D.P., Donald, P.F., Scharlemann, J.P., Buchanan, G.M., Balmford, A., Green, J.M., et al. (2012) Financial costs of meeting global biodiversity conservation targets: current spending and unmet needs. Science, 1229803. 19 Miller, D.C., Agrawal, A. & Roberts, J.T. (2013) Biodiversity, Governance, and the Allocation of International Aid for Conservation: Biodiversity Aid Allocation. Conservation Letters, 6, 12–20. 20 Waldron, A., Mooers, A.O., Miller, D.C., Nibbelink, N., Redding, D., Kuhn, T.S., et al. (2013) Targeting global conservation funding to limit immediate biodiversity declines. Proceedings of the National Academy of Sciences, 110, 12144–12148. 21 Mansourian S., Dudley N. (WWF), Public Funds to Protected Areas, 2008. 22 Leverington, F., Costa, K.L., Pavese, H., Lisle, A. & Hockings, M. (2010) A Global Analysis of Protected Area Management Effectiveness. Environmental Management, 46, 685–698. 23 Craigie, I.D., Baillie, J.E.M., Balmford, A., Carbone, C., Collen, B., Green, R.E. & Hutton, J.M. (2010) Large mammal population declines in Africa’s protected areas. Biological Conservation, 143, 2221–2228. 24 Lindsey, P. A., Miller, J. R., Petracca, L. S., Coad, L., Dickman, A. J., Fitzgerald, K. H., ... & Knights, K. (2018). More than $1 billion needed annually to secure Africa’s protected areas with lions. Proceedings of the National Academy of Sciences, 115(45), E10788-E10796. 25 Chidakel, A and Child, B (2019) Evaluating the economic impacts of park-based tourism using a grounded approach for South Luangwa National Park in Zambia. Under review. 26 Price, R. (2017) The contribution of wildlife to the economies of sub-Saharan Africa. Help Desk Report. Institute of Development Studies. 27 http://cf.cdn.unwto.org/sites/all/files/pdf/abuja_call_for_action-final_rev1-13.06.2018.pdf BUILDING A WILDLIFE ECONOMY 9
1.2. Why Nature-Based Tourism? For the purposes of this Paper, we define nature-based tourism as tourism in natural areas, specifically protected areas, where the principal objective of the visit is enjoyment of nature and wildlife. The definition excludes tourism to protected areas for ‘consumptive use’ of wildlife, for example trophy hunting28. This report focuses only on ‘non-consumptive’ nature-based tourism. Globally, nature-based tourism is increasingly important. While more recent data on growth is difficult to find, nature-based tourism was estimated to be growing at 10% to 12% per annum in 200429, significantly greater than 3.9% for the tourism sector as a whole30 . A number of global trends are driving this growth: increased interest in nature among travellers; increased awareness of destinations through the internet and social media marketing; new source markets; and product innovation. The unique diversity and density of species and habitats in Africa’s protected areas serves as a major draw for international also include goods and services sold by and domestic tourists, and represents a local supply chains, employment, foreign competitive advantage to African countries currency inflows, and tax revenue that competing in the global nature-based supports local and national services, and tourism market. Over the long term, spin-off businesses. however, that competitive advantage depends on effectively maintaining and, in Whilst not the focus of this Working Paper, some cases restoring, protected areas. conservation also has major indirect benefits to national economies and citizens This Working Paper is the first in a series. through ecosystem services. For example, It takes as its focus the financial benefits Ethiopia’s 39,000 sq kilometre protected to governments and businesses that can be area network provides $938m in carbon generated by well-structured and planned sequestration services and $432m in nature-based tourism in Africa’s State watershed services31. Protected Areas (see Part 3). These include direct earnings from gate or park fees, accommodation, food, transport, activities, airfares, and arrival/departure fees. They 28 This will be covered in Working Paper 3 on consumptive-utilisation. 29 TIES Factsheet, The International Ecotourism Society, 2004, https://www.researchgate.net/file.PostFileLoader.html?id=588b6d97dc332df626666ab4&assetKey=AS%3A455170728435714%401485532566915 30 World Travel and Tourism Council, Economic Impact Report, 2004 31 The Value of the Ethiopian Protected Area System: Message to Policy Makers Ethiopian Wildlife Conservation Authority (EWCA), retrieved from https://www.cbd.int/financial/values/ethiopia-valueprotectedareas.pdf 10 BUILDING A WILDLIFE ECONOMY
Case study 1: OL PEJETA CONVERTING WILDLIFE-BASED TOURISM INTO TAX REVENUE AND JOBS Ol Pejeta Conservancy is a 360-sq- To achieve this, Ol Pejeta capitalised on: person per night. Selecting the right kilometre not-for-profit wildlife operators, smart marketing, and Strong domestic demand: The conservancy in Laikipia County, Kenya. careful planning and zoning across Conservancy and carefully selected It has been transformed from a privately- the conservancy (see Part 3 of this companies operating lodges there target owned cattle ranch with overgrazed report) ensures that high-end tourism a mix of international and domestic rangelands into a thriving global and has a degree of exclusivity, with visitors, and Kenyans and foreigners domestic tourism attraction that also high profile African operators such resident in Kenya make up more than boasts sustainable and commercially as Gamewatchers, Asilia, Serena, half of Ol Pejeta’s visitors: 54% in 2017, viable livestock production. In 2017, Ol and Kicheche represented in the and 59% in 2016. The conservancy Pejeta Conservancy generated more than conservancy. also attracts a high number of school $3m in tourism revenue and $1.8m from and university students (28% of 2017 Easy access: Daily scheduled flights commercial farming. visitors). from the capital, Nairobi, operate to Nanyuki airport, a 45-minute drive Ol Pejeta hosts the ‘Big Five’ including High-quality wildlife product: from Ol Pejeta. Driving from Nairobi the largest population of black rhinos in Ol Pejeta boasts some of Kenya’s best takes approximately three hours, East Africa, and a recovering population wildlife viewing experiences outside of with all but the last 13km on well- of endangered African wild dog. It is a the Maasai Mara, including the strong maintained asphalt road. significant local taxpayer and employer: black rhino population and the world’s It paid $940,000 in tax to Laikipia last two remaining northern white Effective management: In County - 1% of the county’s total tax rhinos. 2014, Ol Pejeta became one of the revenues - and an additional $180,000 in first conservancies in Africa to be Successful market segmentation: tax to the national exchequer. Ol Pejeta given Green List status by IUCN, Ol Pejeta has a full spectrum of spent $660,000 on community projects a programme of certification for accommodation options, starting at that year, and employs approximately protected and conserved areas that $45-a-night cabins to high-end lodges 900 people. are effectively managed and fairly and camps charging up to $600 per governed. BUILDING A WILDLIFE ECONOMY 11
1.3. The Economic Value of Nature-based Tourism Tourism was the second-largest tourist arrivals expected to reach 134m achieve sustainable employment, food generator of Foreign Direct Investment people38. security, sustainable energy, and to (FDI) globally, attracting $807 billion protect natural heritage (Annex 1). or 4.4% of total investment in 201632. Tourism is also a significant source The industry’s contribution to GDP has of jobs and foreign exchange flows for The positive impact of sustainable increased over the past decade and is African countries: in Kenya, tourism tourism may be particularly felt in expected to grow further33. Africa is one accounts for 9% of GDP and 15% of rural areas, where most Africans live43, of the world’s fastest-growing regions exports, generating 1.1m jobs or 8% of because it: for travel and tourism34 . International total employment39; in Rwanda, tourism tourist arrivals to sub-Saharan Africa accounts for 15% of GDP and 40% of • Capitalises on key assets of rural rose 4% to 42.4m in 2017, and generated exports, supporting 410,000 jobs, or 13% communities: culture, landscapes, an estimated $34.4 billion in receipts35 . of total employment (Fig. 3)40. temperate climate and wildlife. • Provides 40% more formal full-time Private sector interest is illustrated Expanding sustainable tourism is jobs than the same investment in by the growth in the number of hotels among the Sustainable Development agriculture44 . in Africa: between 2012 and 2016, Goals42, and part of the United this number increased from 177 to Nations’ 2030 Agenda for Sustainable • Creates twice as many jobs as the 36536. According to recent projections, Development. The New Partnership automotive, telecommunications annual consumer spending on tourism, for Africa’s Development (Nepad) in its and financial industries45 . hospitality and recreation in Africa will Tourism Action Plan, and the Gaborone • Employs more women compared to grow from $124 billion in 2015 to $262 Declaration for Sustainability in Africa, most other sectors: In sub-saharan billion by 203037, with international both recognise tourism as a means to Africa, 31% of tourism jobs are held by women compared to 20% of TOURISM ECONOMIC IMPACT general employment 46. KENYA RWANDA Nature-based tourism accounts for a - 9% of GDP - 15% of GDP large share of the economic contribution - 15% of exports - 40% of exports provided by the overall tourism industry - 8% of total employment - 13% of total employment in Africa. Four of every five tourists buying holidays to Africa came for wildlife-watching, according to a 2015 UN World Tourism Organisation survey of 48 governmental institutions from 31 African countries and 145 tour operators selling trips to Africa 47. Protected areas in Africa generated 69m annual recreational visits mainly by international tourists, generating $48 billion in direct in-country expenditure, 25% and above a recent study found 48. Visits to protected areas are increasing globally 10 to 24.9% and are projected to increase further49. 5 to 9.9% In 2015, entrance, gate or park fees from all types of protected areas in just 14 Below 5% countries in sub-Saharan Africa were No data available estimated at $142m per year50,51, while across a sample of African countries, Figure 3: Tourism contribution to GDP in Africa41 visitors on wildlife-watching tours 12 BUILDING A WILDLIFE ECONOMY
Protected areas in Africa generated 69m annual For this broad analysis, however, it seems appropriate and may indeed be recreational visits mainly by international conservative with respect to potential tourists, generating $48 billion in direct in-country national economic benefits, given the local expenditure focus. For example, the World Travel and Tourism Council estimate an average global spent an average of $433 per person per additional $0.79 would be generated in GDP multiplier for travel and tourism at day on tours and an additional $55 in the local economy54 . 3.256. Globally, countries tend to focus on out-of-pocket spending52. Nature-based international tourism due to the foreign tourists also generate more revenue than This mean multiplier of 1.79 exceeds revenue it earns57. However, domestic and business or general leisure visitors: every an alternative estimate of 1.11 from a intra-regional or continental tourism plays $1 spent by a tourist visiting Uganda global meta-analysis of economic impact an important role in regional economic to view wildlife of nature led to an of tourism in protected areas/nature- growth and development. additional $2.5 in GDP53. based attractions55 , implying that more of the value of spending is captured The opportunity for a strong domestic A meta-analysis estimated that for every locally in Africa than elsewhere. In tourism industry is driven by factors such $1 of direct spending from nature-based reality multipliers vary depending as increasing personal wealth, spending tourism in all types of protected areas on the make-up of the local economy power, government initiatives, and in Africa (including park fees, bed- around protected areas, and the type of transport infrastructure58. Several African nights, wildlife-watching activities) an protected area. countries experienced increases in both GDP per capita and domestic spending in the years 2008 to 2017, including Rwanda, Mozambique, Tanzania and the Ivory Coast59. Notably, Rwanda domestic spending has grown at 14% annually for each of the last ten years, enabled by prioritising sustainable tourism. This has had tangible impacts in terms of community development and conservation. While in many developing countries domestic tourism tends to be small in absolute terms, the rate of growth of travel and tourism domestic spending is high60. Four out of ten international tourists in Africa come from the continent. In sub- Saharan Africa, two out of three tourists originate from the continent61. 32 Twining-Ward et al., L., Li, W., Bhammar, H., Wright, E. (2018) Supporting sustainable livelihoods through wildlife tourism. World Congo, Ivory Coast, Democratic Republic Congo, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Kenya, Lesotho, Malawi, Mali, Mauritania, Bank Report, 2018 Mozambique, Niger, Senegal, Seychelles, Sierra Leone, South Africa, Swaziland, Uganda, United Republic of Tanzania and 33 Zimbabwe. Egypt and Morocco are not on the list, which could be distorting the percentage of total annual sales of trips for World Travel and Tourism Council, Travel & Tourism Economic Impact Report 2018 Africa, wildlife watching 34 World Travel and Tourism Council, Economic Impact Report, 2019, 48 Bertzky et al., (2017), European Commission, Joint Research Centre, Science for the AU-EU Partnership: building knowledge for https://www.wttc.org/about/media-centre/press-releases/press-releases/2019/african-tourism-sector-booming-second-fastest- sustainable development, Publications Office of the European Union, Luxembourg. growth-rate-in-the-world/ 49 35 Balmford A, Beresford J, Green J, Naidoo R, Walpole M,(2009) A Global Perspective on Trends in World Bank Database, https://data.worldbank.org/indicator/ST.INT.RCPT.CD?locations=ZG Nature-Based Tourism. PLoS Biol 7(6): e1000144. 36 Signé, L. (2018) Africa’s tourism potential: trends, drivers, opportunities and strategies. Africa Growth Initiative. Available at: 50 World Tourism Organization (2014), Towards Measuring the Economic Value of Wildlife Watching Tourism in Africa – Briefing https://allafrica.com/download/resource/main/main/idatcs/00121020:b944a94427d52ad3a96bc6f60ee935d9.pdf Paper, UNWTO, Madrid. 37 ibid. 51 This figure is likely to be higher as based on a small number of countries 38 African Development Bank Group (2018) Africa Tourism Monitor The High 5s - tourism as a Pathway to Industralization, 52 World Tourism Organization (2014), Towards Measuring the Economic Value of Wildlife Watching Tourism in Africa – Briefing Integration, Quality of Life, Agriculture, and Powering up Africa. Abidjan, Cote d’Ivoire. Available at: Paper, UNWTO, Madrid. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Africa_Tourism_Monitor_2018.pdf 53 39 Worldbank, 2013. Economic and Statistical Analysis of Tourism in Uganda. World Travel and Tourism Council (2019) https://www.wttc.org/about/media-centre/press-releases/press-releases/2019/kenya-t 54 ravel-tourism-exceeding-global-and-regional-levels-in-2018/ Naidoo, R., Fisher, B., Manica, A. and Balmford, A., 2016. Estimating economic losses to tourism in Africa from the illegal killing of 40 elephants. Nature communications, 7, p.13379 World Travel and Tourism Council (2019) https://www.wttc.org/about/media-centre/press-releases/press-releases/2019/an- 55 inspirational-story-of-recovery-and-transformation-rwanda/ van Leeuwen, E.S., Nijkamp, P. and Rietveld, P., (2009). A meta-analytic comparison of regional output multipliers at different 41 spatial levels: economic impacts of tourism. In Advances in tourism economics United Nations Conference on Trade and Development, 2015 56 42 WTTC (2012), The Economic Advantages of Travel & Tourism. ‘Transforming our world: the 2030 Agenda for Sustainable Development’, Available at:https://sustainabledevelopment.un.org/ 57 post2015/transformingourworld World Travel and Tourism Council (2018) Domestic Tourism - Importance and Economic Impact. Available at: 43 https://www.wttc.org/-/media/files/reports/2018/domestic-tourism--importance--economic-impact-dec-18.pdf World Bank database, 2018 58 44 Ibid. World Economic Forum. (2012). Africa Competitiveness Report 2011, https://www.afdb.org/fileadmin/uploads/afdb/Documents/ 59 Publications/Africa%20Competitiveness%20Report%202011.pdf. Ibid. 60 45 World Travel and Tourism Council (2017) “Global Benchmarking Report 2017” Ibid. 61 46 World Tourism Organization (UNWTO) (2011) Global Report on Women in Tourism 2010 The Economic Development in Africa Report 2017: Tourism for Transformative and Inclusive Growth (2017). United Nations 47 Conference on Trade and Development. World Tourism Organization (2014), Towards Measuring the Economic Value of Wildlife Watching Tourism in Africa – Briefing Paper, UNWTO, Madrid. Note: Countries included were Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cabo Verde, Chad, BUILDING A WILDLIFE ECONOMY 13
1.4. Brand Value of Nature-based Tourism Recent decades have seen strong “country brands” emerge where nature, and nature-based tourism, are used to promote national values, appeal to investors, and generally increase the country or region’s international profile62(Fig. 4). SOUTH AFRICA Growth in tourism is typically “From dramatic mountains, sub-tropical accompanied by better economic rainforests and wildlife-rich savannahs performance overall: those countries to buzzing cities, endless beaches and a with well-developed tourism sectors rich cultural history - South Africa is a score better in a range of economic country of astounding diversity, with an metrics including Foreign Direct incredible variety of landscapes, wildlife Investment, exports, and employment63. and culture.” The positive perceptions that nature- based tourism branding generates therefore represent an important opportunity for African countries to BOTSWANA market themselves to the world, and “Botswana is a rarity in our deliver a wider economic and political overpopulated, over-developed world. agenda (Case Study 2). Untamed and untameable, it is one of the last great refuges for Nature’s magnificent pageantry of life.” KENYA “An authentic, credible brand for the country that establishes our uniqueness in the global arena. Athletics, culture, tourism, horticulture, development in ICT, telecommunication, education and our heritage can contribute generously towards improving the country’s attractiveness to holiday makers, nature conservationists, artists, investors and other nationals who would like to make Kenya their home.” Figure 4. Examples of national tourism and brand marketing, with text taken from relevant promotional campaigns 62 Pitt, L.F., Opoku, R., Hultman, M., Abratt, R. and Spyropoulou, S., (2007). What I say about myself: Communication of brand personality by African countries. Tourism Management, 28(3), pp.835-844. 63 Team Analysis, World Bank Data 14 BUILDING A WILDLIFE ECONOMY
Case Study 2: RWANDA In 1999, fewer than 1,000 tourists visited Reforming a national brand to become a nature-based tourism destination Rwanda’s national parks. In 2017, that number was above 94,000, helping propel the country to a Leadership Award from the World Travel & Tourism Council. Rwanda has radically changed and improved its national image to one that focuses on its support for its wildlife and people. The strategy behind that shift included: Improving the image of tourism domestically: After tourism plans were adopted in the early 2000s, a national media campaign sought to persuade Rwandans of tourism’s benefits. Today, one in 20 Rwandans works in tourism - 410,000 people - and 15% of tourism revenues are spent on infrastructure airport south of Kigali (Bugesera) is due doubled in 2017. Since 2016, luxury around national parks to benefit the to be completed during 2019. lodge and hotel chains including people who live there. One&Only, Wilderness Safaris, and Capitalising on exceptional Radisson Blu have opened properties Improving Rwanda’s international wildlife: Rwanda is primarily known in the country, with others, including reputation: Rwanda contracted for its primates, especially mountain Singita, planning new openings international public relations and gorillas. It now also boasts black imminently. marketing agencies in Britain and the rhinos, following a translocation with USA, and was featured in numerous African Parks overseen by the Rwanda Making it easier to do business: It television documentaries and earned Development Board, as well as the rest took 354 days to register a company in positive coverage in several hundred of the “Big Five” and roughly 700 bird Rwanda in 2005, and cost more than international press publications. Its species, and landscapes ranging from 300% the annual per capita income. In plastic bag ban and mandatory monthly savannah to mountain rainforest. 2018, these numbers were 7% and 15% national clean-up day also burnished respectively, leading the World Bank its international reputation. Rwanda is Unique marketing: Each year, to rank Rwanda as the second easiest now widely seen as extremely clean and Rwanda hosts a naming ceremony for place to do business in Africa, after safe. In 2018, Visit Rwanda signed a newborn gorillas. Celebrities, politicians, Mauritius. three-year $38m sponsorship deal with and investors are invited to take part Arsenal Football Club for its branding to and thousands of people attend this Rwanda earned $438m from mostly appear on their match shirts. well-organised unique event. No other nature-based tourism in 2017, which country in the world does this. was 5% of GDP. By 2024, it aims to Easing access to the country: Since almost double that to $800m. To 2018, visitors from every country in the Targeting higher-spending achieve this, Rwanda must carefully world are eligible for a 30-day visa on customers: The price of gorilla manage its dependency on gorilla- arrival that costs only $30. RwandAir, permits, the country’s main wildlife tracking, which generates about 90% the national carrier, embarked on a very tourist product, has been raised multiple of national park revenues, and actively significant investment plan that resulted times in a deliberate bid to target high- diversify its products by developing in new routes to Europe and the US and income visitors: from $375 per person in responsible tourism in other Protected a doubling of their fleet. Lastly, a new 2007, a permit now costs $1,500, having Areas. BUILDING A WILDLIFE ECONOMY 15
2 THE FUTURE POTENTIAL OF NATURE-BASED TOURISM IN AFRICA’S STATE PROTECTED AREAS 2.1. The Fragile Value 2.2. Market Trends of Africa’s Protected Tourism is one of the largest economic sectors in the world and is undergoing major structural changes as global economies evolve, most significantly noted with Areas the rise of new economies in Asia, Africa, and Latin America. These trends will have significant impacts on opportunities for nature-based tourism67,68,69,70: The economic impact of nature-based tourism in Africa’s State Protected Areas, while significant, could be much greater. It could expand into new countries and Current global trends in the tourism sector regions, including new locations in High Traditional Source Markets Performing Destinations where in some Nature-based tourism in Africa has historically been built around long-haul cases tourism is concentrated in only a few source markets in Europe, North America and Australasia/Japan, with a high-profile areas. It could generate the strong emphasis on viewing wildlife, particularly the best-known African funding needed to manage and support the mammals. The so-called “traditional” source markets still account for the continent’s network of protected areas, as most significant share of tourism in most African countries. However Africa well as unlock the wider economic, social as a destination still accounts for a small share of the global market. There are and environmental benefits these areas can significant opportunities for African countries to increase their market share provide. in traditional source markets, capitalising on historic ties and an already strong reputation for nature tourism. However, this could take decades. Important areas could be lost before their New International Markets value is recognised. Evidence suggests New markets in Asia (particularly China and India) are increasingly import- widespread downgrading, downsizing, ant, as a large upper middle-class emerges with growing wealth, mobility, and degazettement of protected areas is and an interest in global travel. These new markets account for an expanding already occurring in Africa64,65 and other share of leisure tourism in some African countries, with a large proportion development opportunities threaten again choosing to visit to experience nature. China is now the leading source their natural capital66. This could cause market for nature tourism globally, accounting for 17% of the international irreparable damage to future economic market followed by the United Kingdom (11%), New Zealand (10%) and the prospects for nature-based tourism. USA (9%). India is the second-fastest growing outbound travel market in the world, predicted to reach 50 million international visits by 2020. With their abundance and diversity of natural assets, African countries are well Domestic and Regional Tourism positioned to individually and collectively African nature-based tourism has historically focused on visitors from increase their share of the rapidly growing outside the continent, but growth of African markets is an important medi- global nature-based tourism market. There um-term trend. This is being driven by increased wealth and mobility among is significant potential for countries to align a growing African middle class that will have an estimated projected spend- strategies and expand their nature-based ing power of $2.6 trillion by 2030. Demand is currently concentrated in key tourism sectors. This would support twin African city-hubs, such as Nairobi, Lagos and Johannesburg, driven by grow- objectives of protecting biodiversity and ing pan-African consciousness and an interest in regional travel. Attracting ecosystem services, while also driving these domestic and regional tourists to nature-based holidays will need economic development, ensuring equitable investment in both supply - creating new nature-based products that appeal sharing of benefits, and supporting a pan- to a domestic audience - and demand - marketing Africa’s nature products African growth agenda. to local and regional markets. Increasing access to and reducing the costs of intra-African air routes, and removing travel barriers especially visa require- ments between African states, will accelerate this growth. 16 BUILDING A WILDLIFE ECONOMY
THE FUTURE POTENTIAL OF NATURE-BASED TOURISM IN AFRICA’S STATE PROTECTED AREAS 2.3. New DESTINATIONS Despite the positive impacts of nature- based tourism, Africa still accounts for HIGH PERFORMING DESTINATIONS: a disproportionately small share of the Significant steps taken towards maximising nature-based tourism potential global overall tourism market. In 2016, (Case Study 3), with significant scope for growth remaining (Annex 2). Eg. 62m people visited Africa, only a little Rwanda, Kenya, South Africa, Zimbabwe. 2 - 5 million protected area visits over 5% of the estimated 1.2 billion per year. Estimated receipts: up to $90m people who traveled globally that year71. GROWING DESTINATIONS: The bulk of those visitors - 59% - Recognise potential of nature-based tourism and making progress travelled to one of just four countries: towards realising it, but with some remaining barriers to growth and still a Egypt, Morocco, Tunisia, and South reasonably long way to go in order to realise their full potential (Case Study Africa, a highly unequal continental 4). Eg. Ethiopia, Swaziland, Uganda, Zambia. 100,000 - 500,000 protected distribution72, and one where only area visits per year. Estimated receipts $2m-$15m one country, South Africa, received significant visitors for nature-based POTENTIAL DESTINATIONS: tourism. It is clear that with the Currently limited or no nature-based tourism but where protected area exception of a few countries, Africa is natural assets provide basis for large potential growth in nature-based not yet realising the potential economic tourism. Eg. Cameroon, Burkina Faso, Ivory Coast, DRC, Ghana. 1,000 benefits of tourism as a whole, and of - 90,000 protected area visits per year. Estimated receipts > $10m For nature-based tourism in particular. This example, Cameroon boasts vast tropical forests with great apes and forest presents a significant opportunity for elephants, beaches with a diversity of marine mammals, hikable cloud forest African Governments. mountains, and open savannahs with lions and other plains game. This combination makes Cameroon ripe for a diversity of tourism products and This report identifies three broad tourism circuits, should the right enabling environment (and most crucially categories for developing nature-based infrastructure and value chains) be created. tourism in African State Protected Areas: high performing destinations, growing destinations, and potential Source: Analysis of World Travel & Tourism Council (WTTC) data destinations. 64 Mascia, M, Pailler, S., Krithivasan,R, Roshchanka, V., Burns, D., Mlotha, M., Murray, D., and Peng, N. (2014) Biological Conservation 169, 355-361. 65 https://www.conservation.org/projects/Pages/PADDD-Protected-Area-Downgrading-Downsizing-Degazettement.aspx 66 For example, Tanzania aims to develop uranium in the Selous Reserve, Kenya has put a railway and a highway in Nairobi National Park, Uganda is excavating oil in Murchison Falls National park and the Democratic Republic of Congo aims to extract oil from Virunga National Park. 67 EcoTourism Australia: A Nature-based Tourism in Australia Manifesto, 2017 68 Kenya Tourism Board, 2017 69 Deloitte, 2016 70 Jumia Travel, 2015 71 World Bank, 2017 72 Team Analysis, World Bank Data BUILDING A WILDLIFE ECONOMY 17
Case Study 3: south africa Tourism and travel in South Africa 72 Lessons from Africa’s leading high-performing destination Diversity of products: South Africa employed 1.5m people and earned the has marketed its diversity of natural country $29 billion in 2018, more than assets well and attracts a wide mix of anywhere else in Africa (in absolute wildlife and adventure tourists, from terms)73. SanParks, its protected area budget backpackers to luxury safari- authority, manages 19 national parks goers. With oceans, forests, savannahs covering 40,000 sq kilometres that and wetlands, it is one of the planet’s 18 between 2016 and 2017 welcomed 6.7m ‘megadiverse countries’, meaning among international and domestic tourists - a other criteria that it has a very high 14% increase on the year before - and share of endemic species. Nature-based generated $97m. South Africa accounts tourism has capitalised on this since as for 16% of Africa’s tourism market, and early as 1898, when the first national despite its tourism economy growing park, Kruger, was created. Today South slower than some of its neighbours, Africa offers a formidably diversified its contribution to employment is still nature-based product, including: expected to rise by 35% over the next ten years, in line with the continent’s • Business tourism: South Africa average74 . Tourism’s success in South has more than 1,000 conference and Africa has several components: exhibition venues. South Africa accounts for • Cultural tourism: Many Strong domestic and continental itineraries include tours to meet tourism: Markets for Africa’s domestic 16% of Africa’s tourism and experience South Africa’s many and continental tourists are typically market. Visits to National peoples and cultures, and its five less volatile than international markets, Parks rose 14% in 2017 cultural World Heritage Sites. although more seasonal. In 2018, • Adventure tourism: The domestic tourism accounted for 56% Good infrastructure: South Africa country’s diverse terrain and of the country’s tourism spending. In has extensive and well-functioning road its climate suitable for outdoor addition, 60% of arrivals to South Africa and rail networks, ranking respectively activities make it an ideal are from African countries, mostly from 10th and 14th globally in terms of playground for adventure-seekers. neighbouring countries. distance and reach. The proportion of paved roads is twice as high as in other Not every country can take inspiration Ease of access: It is relatively easy sub-Saharan African countries, and from South Africa on those criteria. for international tourists to reach the 2010 FIFA World Cup prompted an The strength of domestic tourism is South Africa. Many of the world’s extensive infrastructure investment. ultimately a function of affordability. major airlines serve Johannesburg’s The diversity of tourism products can be OR Tambo International Airport, and Supportive visa policy: Most limited by geography, and infrastructure there are direct flights from eight of European, North American, and South requires investment. But easing entry ten of the world’s largest economies, American citizens do not need a visa to requirements is a replicable solution with with India and Japan the exceptions. enter South Africa. Neither do Japanese, potentially significant impact, as proven Domestic flights connect directly from Russian, or Australian visitors. For by triple-digit growth of Chinese tourists Johannesburg to game reserves or those who do require a visa, the cost is travelling to Morocco and Tunisia after national parks. Domestic travel is easy low at around $30, credit cards can be they went visa-free in 2016 and 2017. and competitively priced with a diversity used, and receipts are provided. Indians of airlines. and Chinese, two of the fastest-growing tourism markets, however still require visas. 73 World Travel & Tourism Council, South Africa, 2018 74 Ibid. 18 BUILDING A WILDLIFE ECONOMY
Case Study 4: ETHIOPIa Ethiopia is a unique tourism proposition. Unlocking the potential for nature-based tourism in a growing destination It has cultural and natural features that clearly distinguish it from other African destinations and any other nation on the planet. It is ecologically diverse, with deserts in the east, tropical forests in the southwest - the birthplace of coffee - and one of Africa’s longest mountain ranges, the Ethiopian highlands. Ethiopia hosts 31 endemic species of mammals includ- ing the Ethiopian wolf and the Walia ibex, and has more UNESCO World Heritage Sites - nine - than any other African nation. The number of international visitors to Ethiopia has risen on average 9% an- nually since 2012, to 933,344 in 201775 . Holiday trips accounted for 37% of these visits in 2018, with most of the rest being for business, or visits from the Ethiopian diaspora travelling on a foreign passport, or a huge number transiting through Ad- dis Ababa’s international airport. While 77% of tourism spending was by inter- national travellers76, few of them visited the country’s best-known attractions: no single site received more than 50,000 tourists in 2016, not even the National Museum in Addis Ababa or the famous town of Lalibela. some cases severely impacting tourism: New types of tourism: visits to the Simien Mountains National Ethiopia could become a trekkers’ par- Barriers to fully realising the potential of Park dropped by 54% in 2017 compared adise featuring protected areas such as Ethiopia’s nature-based tourism include: to 2016. Bale Mountains NP, Gwasa Community Conservancy. Birdwatching could be Inadequate infrastructure: In- Opportunities to develop nature based expanded, capitalising on Ethiopia’s 835 vestment in accommodation has been tourism include: bird species, 23 of which are endemic concentrated in main cities and targeted to business travellers. There is a lack of New destinations: Addis Ababa and The potential for Ethiopia to become an basic infrastructure for tourists visiting the regions of Amhara, Oromia, Harar, established tourism destination mostly protected areas. Simien Mountains National Park and relies on ensuring that the quality of its Tigray concentrate more than 95% of infrastructure and services are in line Security concerns: Political unrest visitors77. New destinations focused in with the source markets it aims to target. and other threats prompted several other regions such as Afar, Benishangul, governments including the US, Canada, Dire Dawa, Gambela and Somali could and Britain to issue travel advisories, in potentially be developed. 75 Ethiopian Ministry of Culture and Tourism, 2017 76 World Travel and Tourism Council, 2019, retrieved from https://www.wttc.org/about/media-centre/press-releases/press-releases/2019/ethiopia-records-biggest-growth-in-world-travel-tourism/ 77 Centre for the Promotion of Imports from Developing Countries, 2018, https://www.cbi.eu/sites/default/files/vca-study-tourism-ethiopia.pdf BUILDING A WILDLIFE ECONOMY 19
2.4. Growth opportunities and challenges opportunities challenges Strong Assets Strong Competition Africa has a fundamental competitive global African countries compete in a global market: advantage because of its diverse and unique natural countries such as Sri Lanka and Costa Rica have assets. Large protected landscapes host rare and expanded their nature-based tourism sectors special wildlife, including iconic species resonant in substantially as a result of strong product the popular imagination of many people in the world development, policy support, and marketing. While a growing market should benefit all, Africa must work Improved Access harder to market its unique attributes and secure Improved air access both to and within Africa is a market share significant enabler for tourism growth in general. Initiatives are underway to allow visa-free travel Market Perceptions within African countries for African citizens and for Some African countries such as Kenya or Botswana international tourists once they arrive in Africa. Some are well-established in the global nature tourism countries share a one-visa system, e.g. Kenya, Rwanda market, but new destinations face a challenge to build and Uganda, allowing tourists free travel between all awareness and trust. All countries remain vulnerable three countries using only one visa; and the proposed to external shocks, typically security or disease UNIVISA for Kavango Zambezi Transfrontier related, e.g. the ebola outbreak in 2014-2016, that can Conservation Area countries and free movement of halt or reverse growth people proposed under the Africa Continental Free Trade Area Biodiversity Loss Across Africa biodiversity and habitat loss is New Markets accelerating, due to a complex mix of factors driven In addition to core markets in Europe, North America by population growth, poverty, demand for illegal and Japan, global economic growth, particularly wildlife products, and economic development. Loss of in Asia, has created significant new markets for biodiversity and habitat assets represents a significant nature tourism, which are yet to be fully exploited in threat to the long-term future of Africa’s competitive Africa. Intra-African and domestic tourism are also advantage in nature tourism important emerging and expanding opportunities Product Gaps New Destinations Despite the existence of some compelling and globally There is an opportunity to develop nature tourism recognised nature tourism products and experiences, in non-traditional destinations for example in Africa’s low share of the global tourism market means Ethiopia, Gabon, Benin, Nigeria and Ivory Coast, there remains a deficit in tourism products and while improvements in peace and security across infrastructure across many regions and countries the continent offer significant potential to diversify products. There is a demand for these new products Investment Conditions Political stability, ease of entry into countries, ease Growing Awareness of transport, security, hospitability, and overall In an increasingly connected world, the growing choice of products are all necessary for investment profile of Africa in both the global economy and in the tourism. Many African countries must address culture is a major opportunity to further entrench weakness in these areas in order to attract the Africa’s reputation as the nature tourism leader in the investment necessary to grow their tourism sectors. eyes of the world 20 BUILDING A WILDLIFE ECONOMY
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